' ZORRO IF-NGLNTERPQG IN'ORKS LIMITED 1

XLRI, Jamshedpur

Pranabesh Ray

ZORRO ENGINEERING LIMITED

In December 1992, Mr. Ashok Dayal, Factory Manager of Zorro Engineering Works, Faridabad, was reviewing the performance of. Mr. Aseem Bose, Personnel Officer in his factory. Mr. Bose had joined Zorro in January 1992, and was completing the one year probationary period on January 1, 1993:

Zorro Engineering Works was set up in 1948 for the manufacture, sales and service of diesel pump-sets for agriculture use. In spite of a promising start, the growth of the company had been slow, and in recent years, the unit had been besieged by acute financial and labour problems. This had resulted in losses during, the period 1976-90. As a result, in April 1991 the previous Factory Manager had resigned, and Mr. Ashok Dayal, a qualified Mechanical Engineer with 10 years line experience in shop floor production management, had been recruited as the new Factory Manager.

On joining, Mr. Dayal set about reorganising the internal working of the unit and introduced new reporting and control procedures. The production, commercial and administrative functions were placed under the charge of three experienced officers all reporting to Mr. Dayal, so that each could be given full responsibility for the departments under his control. As a result of these and other similar efforts, the company had begun to turn the corner by the middle of 1992, and was now showing signs of recovery both in profits and the internal working environment.

During the process of reorganisation, Mr. Dayal had noticed that a number of changes were required in the administration and personnel work. The factory did not have a Personnel Officer and most of the personnel work of recruitment, promotions, transfers, and salary administration of workers and staff was being shared between office superintendents in the Production and Commercial departments and the Administrative Officer.

Since Mr. Dayal wanted to introduce a more scientific and centralised system of personnel management, a new post of Personnel Officer was created and Mr. Bose, a young diploma holder in Personnel Management, recruited. Mr. Rajesh Kumar, the Senior Administrative Officer was elevated to the position of Administration Manager, with the Personnel and Administrative Officers reporting to him. A partial organisation chart of Zorro Engineering Works as in December 1992 is shown in Exhibit-1.

During the course of the one year that Mr. Bose had been working in Zorro, he had been in very close touch with the, Administration Manager. However, since Mr. Dayal had been very busy looking after the production and financial problems, he had not been able to give his full attention to personnel, administration, and industrial relations matters. His contact with Mr. Bose had, therefore, been somewhat infrequent.

By the end of 1992, production problems had been overcome and Mr. Dayal began giving more attention to the commercial and administrative functions. The previous wage agreement with over 1,500 workers and 450 staff was due to expire by March 1993, and there were already signs of growing unrest. The number of complaints and grievances regarding partiality, injustice and nepotism, in the recruitment, promotions, transfers, incentive payments, and pay scales areas were again increasing. Mr. Dayal expected that inter-union rivalries, and the resultant pressures on management, would soon increase. He was, therefore, anxious that the internal functioning, of the personnel, industrial relations and administrative sections be geared immediately to take care of the expected increase in workload.

In order to help in the review and streamlining of work being handled by the Administration Manager, Mr. Dayal requested that the personal files of officers working under Mr. Kumar be sent to him, along with their duty lists. The first officer whose case came up for review was Mr. Aseem Bose, Personnel Officer. Along with other papers, Mr. Bose's file contained his performance evaluation report for.1992. Mr. Dayal was surprised to find wide disparities between the self-appraisal report submitted by Mr. Bose, and the detailed assessment done by Mr. Kumar. (See details given in Exhibit-2.)

It appeared to Mr. Dayal that the appraisal system and form used did not help him to make an independent assessment of Mr. Bose's work. He, therefore sought the "informal" opinion of the Administrative Officer, and Mr. Bose's subordinate officers, in order to get a clearer picture. The "general comments" of these four officers are given in Exhibit-3.

Mr. Dayal was keen on improving the appraisal system being used in Zorro. He was also wondering what actions he should take on Mr. Bose's performance evaluation report for 1992.

Exhibit-1

Partial Organisation Chart of Zorro Engineering Works Ltd.

Factory Manager

(Mr. Ashok Dayal)

Production Commercial Administration

Manager Manager Manager

(Mr. Rajesh Kumar)

Production Office Supdts., Personnel Administrative

Supdts., Assistants and Officer Officer

Foremen and Clerks (Mr. Aseem Bose)

Staff

Enquiry Labour Medical Office

Officer Officer Officer Clerk

(Part-time)

Enquiry Clerk Asst. Lab. Officer

Exhibit-2

Zorro Engineering Works Limited

Performance Evaluation Report-Commercial Officers

PART A

Personal Data (To be filed in by the personnel department)

1.Name :Mr. Aseem Bose

2.Age :32 years

3.Qualifications :BA, L.L.B., Dip. Personnel Management

4.Experience :1985-89 Office Assistant, Attendance and Pay Office, Prima Pvt. Ltd., Ghaziabad;

1989-91, Assistant Personnel Officer, A-One Industries, Faridabad

January 1992 to date: Personnel Officer,

Zorro Engineering Works

5.Date of joining :January 1, 1992

6.Designation :Personnel Officer

7.Reporting to :Mr. Rajesh Kumar, Administration Manager

PART B

Self-Appraisal (To be filled in by the officer being evaluated)

During the last one year as Personnel Officer, I have looked after the entire labour welfare, legal and industrial relations work in the factory. The work has been done as per the list of duties assigned to me by the Administrative Manager. The Enquiry Officer, Labour Officer, Medical Officer and Assistant Labour Officer have been reporting to me, and I have also been in very close touch with the Administration Manager and other senior officers in the factory. Direct contact with the labour unions has also been one of my important duties.

I am happy that even though a new post of Personnel Officer was created when I joined, have fully established the Personnel department. At the time of joining, there was no co-ordination between officers looking after the personnel work. As a result, the Production and Commercial Managers had to contact the Factory Manager directly, for solving problems connected with workers and staff. Now, however, all managers come to me with their problems and I give them decisions. Because they know that I am in-charge of the personnel department, and listen to their problems, even the workers come to me when they have any problems with their foremen. I give prompt attention, immediately ring up the foreman's manager, and get their problems solved.

The labour welfare activities (sports, recreation, canteen, fair-price shop, and credit society) have also been improved and all workers are happy. As a result, the discipline within the factory has improved and the number of charge sheets issued every month has decreased. I have also started a suggestion scheme so that the complaints and grievance of workers can be handled quickly.

The working of the legal department has been improved and the number of charge sheets pending with the department has gone down from 40 in February 1992, to only 15 now. This prompt disposal of pending enquiries has given the workers a feeling that justice will be promptly given to them in future also. I, therefore, expect that my close contacts with union leaders will help the management to negotiate a suitable wage agreement before March 1993.

I am extremely thankful to my manager for his full guidance and encouragement in my work. He has appreciated my work a number of times and this has helped me to gain the co-operation of the Administrative Officer, Labour Officer and other officers in the department. I am also thankful to the Factory Manager for his guidance at all times.

I am looking forward to increased responsibilities next year. At present the personnel work of recruitment, salary administration, promotions and incentives is being handled either by the Administrative Officer or within the commercial and production departments, by respective office superintendents. Since this work should be the prime responsibility of the personnel officer, I hope that the management will include these functions as part of my regular duties. In that case, the routine work of labour welfare can be handled by an Assistant Labour Welfare Officer recruited for the purpose.

I would like to again thank the Administration Manager and Factory Manager for their guidance and encouragement at all times.

Signature : -Sd-

Name : (Aseem Bose)

Designation : Personnel Officer

Date : November 15, 1992PART C

Assessment by immediate superior

I. Personal Qualities

1.Integrity :Very good8. Leadership :Average

2. Discipline :Very good9. Personality :Average

3. Punctuality :Very good10. Health :Very good

4. Attendance :Very good11. Communication

Oral :

Written :Very good

Average

5. Honesty :Very good12. Relationship with

Supervisors :

Colleagues :

Subordinates :Very good

Average

Poor

6. Initiative :Fair13. Cost consciousness :----

7. TactPoor14. Ability to get work from

others: Poor

II. Major Strengths

Mr. Bose is a good desk worker, and has good talking abilities. He also has theoretical knowledge of labour welfare and personnel work.

III. Major Weaknesses

He needs to improve his relationships with people and his ability to get work from others.

IV. General Remarks

I am not at all satisfied with the work done by Mr. Bose.. He gives opinions and advice without proper study of the problem. His relationships with subordinates and colleagues are poor, and many officers have complained that he is impolite. The labour officer and administrative officer who have been working in our factory for 15 -20 years, have also complained that he does not treat them respectfully.

A detailed list of duties had been given to Mr. Bose when he joined. My specific comments against each of the duties assigned are given in the extra sheet attached.

V. Overall rating : Below average

VI. Recommendation : Not fit Date : November 30. 1992

-Sd-

Rajesh Kumar

Administration Manager

Comments on duties assigned to Mr Bose

Sl.No.Duties assigned to

Mr. Bose Comments on performance

(A)Employee Benefit

Programmes

1. CanteenThe unions are not satisfied. I had asked him to get the workers involved in the management of their canteen so that there would be no complaints against the running of the canteen. This has not been done

2. Co-operative SupplyThe previous manager of the fair price shop run by the Employees Co-operative Society had resigned 2-3 months ago. No suitable replacement has been found yet. The employees are complaining.

3. Employees Credit

SocietyThere were complaints that the elections were not held properly.

4. Medical SchemeThe part-time doctor takes leave frequently, and no advance notice is put up for employees. Sometimes complaints are received that the doctor does not come in time.

5. Sports ClubThe club was being monopolised by the clerical staff, and workers were not able to participate. The workers and clerks should both get equal opportunities and should play together. Only now a new constitution has been approved. However, no proper entertainment functions have been organised.

6. LibraryIt opens for only two hours and has a peon who gets an additional Rs.25 for this work. Very few new books have been added.

(B)Printing House JournalThis is a quarterly and was under his charge for the first 6 months, but no issue was published. Now this work has been given to another officer in the Public Relations Section.

(C)Union Relations

1. Industrial RelationsThe unions complain that he delays the answers to their letters. The union leaders do not have faith in him, and prefer to talk to the Administrative Officer or to me directly as they were doing earlier.

2.Grievance ProcedureThe grievance procedure has not been made till today. An ad hoc procedure is being followed.

Sl.

No.Duties assigned to

Mr. BoseComments on performance

3.Conciliation, Industrial

Tribunal, Labour Courts,

Arbitration, Payment of

Wages InspectorHe does not provide information to the conciliation officer, Industrial tribunal, Labour Courts and Arbitrator in time.

4. EnquiriesThe work of enquiries and charge sheets has been improved on by the Enquiry Officer

(D)5. Personnel Planning

and Evaluation

a) Assessment of

Strengths and

Weaknesses of the

company's personnel

policies and practices.

b) Conduct of morale surveys, preparation of manuals and

Organisation charts with the detailed duties of officers, Job analysis and job

Evaluation.

6.Complete guidance to all

departments regarding all

labour laws, provident

fund, and gratuity. Also

preparation of appeal

cases and subsequent

follow through.

Any other duties allottedHe should make a periodic assessment of the strengths and weaknesses of our personnel policies and practices and assist in the formulation of better policies. This is not being done.

He has not conducted any morale survey or prepared any manuals, organisation charts or job descriptions, or done job analysis and job evaluation.

He has theoretical knowledge only.

Since he has not done the above tasks, the question of assigning other duties does not arise.

-Sd-

Rajesh Kumar

(Administration Manager)

EXHIBIT- 3

General Comments of Mr. Bose's Colleagues and Subordinate Officers

1. Administrative Officer: The A.O. had been with Zorro for over 20 years, and had slowly risen from the clerical cadre to his present position. According to Mr. Dayal, he was an asset to the Company. Because of his long experience, he knew all the procedures, rules and precedents, and could therefore handle general administration and establishment matters very competently. His longstanding personal relationships with workers and staff had also helped, especially in the performance of his earlier duties of welfare, and labour relations. However, since he seemed considerably overworked, and had a limited potential for growth, it had been necessary to create an additional post of Personnel Officer.

The AOs comments are given below:

"The new P.O. is doing only part of the duties I was earlier doing single handed, and he is being paid more than I am getting. I would not grudge him this, provided his coming here had really benefited our factory. I, however, cannot see many improvements made. The personnel work is still being performed in the same ad hoc manner by various department managers, and the labour matters and enquiries are, in any case, being handled by others officers like the L.O., A.L.O., and E.O. Therefore, I don't really know what keeps the P.O. busy all day long."

2. Labour Officer. The L.O. had been incharge of legal matters in Zorro for about 15 years, and had also applied for the post of P.O. as an internal candidate. His narrow specialisation in legal aspects alone had gone against him, and even though the Administration Manager had recommended his promotion, the Interview Committee consisting of the Factory Manager and his three managers (I/c Production, Commercial and Administration), had not found him suitable for personnel work.

The L.O.'s comments are given bellow:

"I am reporting to the P.O. for all legal matters, and have to take orders from him. However, he is too inexperienced and immature, and has only theoretical knowledge.

I have been in Zorro for over 15 years and was earlier handling legal matters, including the work of labour courts, and industrial tribunal independently. I would like the P.O. to handle even one case on his own without my help."

3. Assistant Labour Officer: The A.L.O. was a young man, recruited just 8 months earlier. According to Mr. Dayal, he was "extremely bright" and would do well after he had gained some more practical experience.

The A.L.O. commented as under.

"I come in contact with the P.O. largely through the Labour Officer. However, my view is that he is a capable officer, and would do well if he got some more guidance and co-operation from other officers in our department. I really don't want to say anything more than this."

4. Enquiries Officer: The E.O. had been in Zorro for 8 years and was incharge of discipline matters.

His comments are given below:

"I like the P.O. Earlier we used to have a highly legalistic approach to our workers in disciplinary matters, and for every minor offence we would charge-sheet the worker. Now we don't do that. We try to sort out the matters informally, and I think this has made the workers happier. Of course, there are other reasons also why the workers could be happy or unhappy. Good discipline, welfare, and labour relations should really be the responsibility of all officers and not just the P.O. or E.O., although we officers in the Personnel Department have to give proper guidance. Quite a lot depends on others also."

12